Posts Tagged ‘sr&ed tax credits’

Upcoming Seminar in Delta, BC – Innovation Funding Programs for Growth-Oriented Companies

Please join us on January 27, 2016 at the Delta Town & Country Inn for a breakfast seminar on Government Funding for innovation presented by Northbridge Consultants and NRC-IRAP. This seminar will provide a unique opportunity for growth-oriented companies to network and learn from the experts about various tax credits, grants and loans for research, innovation and experimentation .

Time: Wednesday, January 27th, 2016
7.30 am – Breakfast and networking
8.00 to 9:30 am – Presentation and Q&A

Location: Delta Town & Country Inn, 6005 Highway 17A (at Highway 99), Delta, BC (map)

Please register online by January 25th, 2016. (Registration is $15 and includes breakfast)

Synopsis: Each year the Canadian Government provides over $7 billion in innovation funding for small- and medium-sized businesses in various industries including but not limited to manufacturingdigital media, plastics and chemicalsfood processing, biotechnology, and aerospace.

Our Regional Manager for Western Canada, Jaap Siekman, will be hosting the seminar together with Erik Kaas, the Innovation Advisor for the National Research Council of Canada (NRC-IRAP) Concierge Service. Together, they will cover a range of government grants and funding programs including the National Research Council’s Industrial Research Assistance Program (NRC-IRAP), the Scientific Research and Experimental Development (SR&ED) Tax Credit Program and the Agri-Innovation Program among others.

Sourcing funding from multiple government programs to meet business goals and continually invest in innovation is essential to securing a competitive advantage and accelerating the growth of your business.

R&D Across Canada: 10 Quick Facts

1. The Scientific Research and Experimental Development (SR&ED) tax incentive program dates back to as early as 1944, when companies could deduct 100% of eligible expenditures and a third of capital expenditures incurred for scientific research from their taxable income.

2. The Canadian government provides over $20 billion in the form of direct and indirect funding programs each year for increasing innovation and national competitiveness.

3. Canadian expenditure on industrial R&D, expressed as a share of GDP, is relatively low compared to other countries and is predominantly concentrated in several traditionally R&D-intensive industries, including aerospace, pharmaceuticals, information and communication technologies, oil and gas extraction, and scientific research and development services.

4. While several industries are at par with other countries in industrial R&D intensity, such as computer and communications equipment manufacturing, these industries constitute a smaller portion of the Canadian economy, thereby dragging down Canada’s overall industrial R&D intensity compared to other countries, such as the U.S.

5. Despite relatively low industrial R&D expenditures, Canadian firms repeatedly report high levels of innovation compared to other countries.

6. Canada has the 12th highest rate of patents granted in the world and is responsible for 1.1% of patents filed in Europe, Japan, and the United States.

7. Ontario accounts for the largest share of R&D in the ICT sector. Aerospace R&D is concentrated in Quebec, R&D in the oil and gas industry is predominantly concentrated in Alberta, British Columbia, and Atlantic Canada, whereas the majority of pharmaceutical R&D is performed in British Columbia, Ontario, and Quebec.

8. Canadian companies are increasingly combining indirect funding from SR&ED with direct government funding programs, such as grants and loans, for business growth, continuing innovation, and workforce development.

9. Compared to other countries, Canadian industrial R&D is more labour intensive and less capital intensive.

10. Canada has several globally significant clusters of R&D-intensive firms as measured by number of patents granted. There are almost as many patents produced in the GTA as in Vancouver and Montreal combined. Furthermore, the number of patents per capita is highest in Ottawa and Waterloo.

Source: The state of Industrial R&D in Canada. Council of Canadian Academies, 2013

Newfoundland and Labrador Interactive Digital Media Tax Credit

Originally announced as part of the 2015 Provincial Budget released in April, the government of Newfoundland and Labrador has recently finalized and implemented a new interactive digital media tax credit to support businesses in the competitive digital media industry. The Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit will offer a 40% refundable rate on eligible labour and remuneration costs incurred while developing an eligible product between January 1, 2015 and December 31, 2019.

The credit will be available to taxable, interactive digital media development companies with a permanent establishment in NL who have registered with the NL Film Development Corporation. For a product of such a company to be eligible for the new tax credit, the product will have to meet the following qualifications:

  • The interactive product has the primary purpose to educate, inform, or entertain;
  • The interactive product presents information using at least two of text, sound, and images;
  • The interactive product is intended to be used by individuals for purposes other than interpersonal communication and is non-promotional; and
  • The interactive product must provide feedback to the user, allow the user to control what information is presented and when, and the product must adapt to the user’s needs (if appropriate).

Not all products that meet the above criteria are eligible, so please consult the NLIDM website for a complete explanation of eligibility.

If a product is eligible, the credit can be awarded up to a value of $40,000 per employee, with a maximum of $2,000,000 in labour and remuneration claimable. While employee labour is claimable up to 100% of development time, it should be noted that remuneration costs will only be claimable to a maximum of 65%. Unlike other provincial IDM programs, the NLIDM credit must be claimed in respect of the year that the expenses were incurred and this claim must be submitted to the Minister of Finance within six months of the end of the taxation year.

While the tax credit is currently managed by the Ministry of Finance, it will transition to the CRA beginning in May 2016. This means that digital companies in Newfoundland and Labrador should try to not only take advantage of this new program, but also look at Scientific Research and Experimental Development (SR&ED) tax credits, which are also filed with the CRA. With a 15% provincial SR&ED top-up available, companies that submit claims under both these programs can benefit from significant tax returns to continue innovative product development.

Funding Webinar: Optimizing Returns from Multiple Government Funding Sources

We invite you to join us for our upcoming information session!

Domestic and international competition is forcing Canadian businesses to develop new or improved products, increase productivity and expand sales in global markets. Financing for innovation or growth has always been a challenge for many companies in Canada. Both the federal and provincial governments provide their financial support through over $20 billion in various funding programs each year. Sourcing funding from both SR&ED tax credits and other direct government incentive programs can give companies the edge they need to take their business to the next level.

WHEN: Thursday, November 26, 2015
WHERE: Online @ 11:00am EST

Learn About:

  • Types of government funding opportunities
  • Eligibility for financing, funding, and tax credits
  • Optimizing your returns from multiple government funding programs
  • Compliance issues between SR&ED and other government funding sources

Click here to register for this informative webinar!

Speaker

Gerry Fung, CPA, CMA, P.Eng.
Group Manager, Business Services

Learn From The Experts: Government Funding Seminar in Abbotsford, BC

Don’t miss an opportunity to learn from the experts about how different government funding programs can help you realize and accelerate your corporate goals. Register today to attend a free breakfast seminar on government funding and learn about funding opportunities to support growth, investment in innovation, and workforce development.

Time: Wednesday, September 30, 2015
7:30 am — Breakfast and Networking
8:00 am — Presentation and Q&A

Location: Sevenoaks Shopping Centre, 2nd Floor Boardroom.
32900 South Fraser Way, Abbotsford, BC (Enter by Chatters and Walk left)

Presenters:  Jaap Siekman, NorthBridge Consultants Regional Manager for Western Canada, and Erik Kaas, Innovation Advisor for the National Research Council of Canada Concierge Service.

[Online registration]

The seminar will cover a range of topics including:

  • Subscribe to our feed
  • NorthBridge Consultants' Government Funding Blog is dedicated to bringing businesses news and information to help them identify and access the most appropriate government funding programs.

    We offer opinions and insider information that can provide a pulse on government initiatives, the health of the Canadian economy, and firsthand thoughts from Canadian business owners.

Most Recent Entries

Upcoming Events